Currently in Escrow: Section 8 Tenant and behind on Rent

[Eileen L.]

Hello, 

I'm currently in escrow and the current tenant's lease is expiring this month. I requested info from the seller's agent to see if they were going to stay and renew the lease, since their year is done at the end of March. They said the tenant is going to stay and will renew lease, but the current lease states the rent will go up 3.5% every year. The lease says it's valid for 5 years, if they stay and do not put in a notice.

I've just seen the rental transaction history for the tenant from last summer until now. It looks like they had an unpaid balance last summer for about $700 and haven't been able to catch back up.  There was a water bill for about $200 that put them even further behind, but they have been paying the rent every month from a Section 8 payment and supplementing the remaining payment themselves. However, due to the unpaid balance they have, they keep getting $50 late fees every month and are getting further in the hole. I'm assuming the debt will be with the current owner and I'll start with a zero balance with them, but now worried there may be future issues. I'm planning to use the PM that I already have for my other rental, so it will no longer be the current PM as well. I'm already in escrow and see this being a good deal long term, just looking for any advice/precautions to handle this current tenant. Thank you in advance!